Pertamina allocates $6.2b for clean energy capacity expansion

It eyes 6 GW of green energy-based plants by 2029.

State-owned energy company Pertamina’s unit Pertamina New & Renewable Energy (Pertamina NRE) announced its $6.2b investment to achieve its clean energy targets in the next five years.

In a statement, the Indonesian company said among its goals is having 6 gigawatts (GW) installed capacity of clean energy-based power plants by 2029. This will be achieved through contributions from gas to power and renewable energy-based power plants such as geothermal, solar, and biogas, it noted.

Pertamina said its operated power plants should soon have an installed capacity of approximately 2.6 GW. 

The company also aims to produce 7,000 tons of clean hydrogen annually by 2029 and 840,000 kiloliters of bioethanol. For the battery ecosystem and electric vehicle business, it targets a production capacity of 51.4 gigawatt-hours (GWh). 

Also part of the 2029 plan is selling 19.2 million tons of CO2 equivalent carbon credits, Pertamina said. 

“This year, Pertamina NRE focuses on several priority initiatives, including developing the bioethanol business to support biofuels increased utilisation in Indonesia in collaboration with Pertamina Patra Niaga, developing the Lumut Balai 2 geothermal area with a capacity of 55 MW, expanding the geothermal business overseas, carbon business, and hydrogen for mobility,” the company said.

Pertamina said its subsidiary recorded an electricity production of 5,452 GWh in 2023, up 17% compared to 2022, driven by gas to power, geothermal, solar, and biogas generation.

"Following Pertamina’s business strategy to develop low-carbon businesses, we support Pertamina NRE in continuing its expansion. Its business growth not only contributes to the energy transition in Indonesia and national energy security but also benefits the government’s NZE 2060 target achievement," said Pertamina Vice President of Corporate Communication Fadjar Djoko Santoso.